Some hospitals monitoring tariffs from President Donald Trump are raising concerns about supply shortages and higher costs for medical devices, personal protective equipment, surgical tools and testing equipment.
Providence, a nonprofit health care network in the western U.S. with 51 hospitals, says it expects its costs to rise by as much as $25 million per year from the initial set of tariffs, our sister paper Modern Healthcare reports.
A recent survey by Black Book Research found that 88 percent of the responding health care executives are expecting at least an 18 percent increase in costs in 2025. Seventy-five percent of those executives also said they intend to pass higher costs on to patients and other payers. Some nonprofit organizations, however, said they cannot pass forward their costs, so they will likely need to cut back on some services.
Black Book said a third of its survey respondents are prioritizing domestic suppliers, but 94 percent are worried that those companies cannot meet regulatory hurdles in a timely manner. Only 12 percent of those surveyed said they can completely shift their supply chains by the end of 2025 without disruptions.
Groups including the American Hospital Association are pushing for exemptions for imports of vital medical supplies, Modern Healthcare wrote.
Plastics News reporter Sarah Kominek is following the topic. Feel free to reach out to Sarah to share your perspective.